MANILA, Philippines — Filipinos struggle with financial literacy, according to a 2015 World Bank survey, with lowest financial literacy in the region at 25%, compared to 59% in Singapore, 52% in Myanmar, and 36% in Malaysia, among others.
While financial illiteracy is challenging to overcome, it is not impossible to combat. According to financial expert UnionBank, a lot of financial literacy can be honed by educating yourself on finance management, and training yourself to make wise decisions when it comes to your budget.
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Managing your finances properly can ease worries, and builds a sense of security for the future. Whether it is alloting sensible budget for your daily food and transportation, or long-term plans like buying a house, traveling, and starting a business, being financially literate helps you improve the quality of your life.
There are many ways to train yourself to be financially literate, which can help you turn the woes to wins, achieve goals, and live a happier life. A UnionBank statement sent to Philstar.com lists some ways:
Budgeting
Woe: There are a lot of daily necessities and monthly dues so there’s no room to save or spend on personal wants. These can be overwhelming to manage and there is a tendency to pour all resources there.
Win: Budgeting is one way to manage finances. It allows you to look into your expenses, reallocate funds to ensure needs are met and make room for wants. This way, you can spend on both important things and little luxuries and rewards for yourself every now and then.
Being financially literate means avoiding spending money you do not have, and maximizing money that you do have to achieve your short-term and long-term goals.
Tracking and organizing
Woe: It’s easy to get lost in all your transactions and not everyone has the time to keep track of them. It can also be a hassle to do, especially if there are too many accounts to look at, which would take time and effort.
Win: Conquer this challenge and take control of your finances to win in life. Tracking and organizing your accounts and transactions allow you to have better visibility of your finances, stay within your budget and prevent financial mishaps, to reach your goals faster.
Investing in the future
Woe: Investments and insurance can be intimidating because of the price tags that come with them. Because they can be pricey, they become additional expenses that don’t fit into the budget.
Win: Understanding the value of investing in the future is also part of being financially literate. You are not only preparing for what is up ahead, but also for how it can impact others. Whether it is investment for potential long-term wealth or insurance to keep yourself and your loved ones protected, the goal is always to live a better and more comfortable life because life and accident insurance plans can ease any unforeseen financial burdens.
Financial literacy matters because it helps you get past your financial woes and score wins in life, as it allows you to make better money decisions every day. Budgeting, tracking and organizing finances, and investing in the future are just some of the habits that will surely make an impact on your future. As you become more financially literate and responsible, you are one step closer to achieving your goals.
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